Oil and Gas Industry Faces Up to Two Years of Disruption from Iran War

The global oil and gas industry may take up to two years to recover from disruptions caused by the Iran war, according to Fatih Birol, executive director of the International Energy Agency (IEA). The damage has affected oil fields, refineries, and pipelines across the Persian Gulf, as well as the near-closure of the Strait of Hormuz, a vital energy shipping route.

The loss of hundreds of millions of barrels of crude and refined fuels has deprived the market of these essential resources. Birol warns that even with the opening of the Strait of Hormuz, production levels may not immediately return to pre-conflict levels. He describes this assumption as 'misleading.'

The recovery of liquefied natural gas (LNG) supply may take longer, with some terminals requiring more than two years to normalize after suffering damage in attacks. Emerging economies, particularly those in Asia and Africa that rely heavily on energy imports, will bear the brunt of this disruption.